Every June 16th, the International Day of Family Remittances is celebrated, a date dedicated to recognizing the fundamental importance of the financial contributions sent by migrant workers to their families and communities in their countries of origin.
These remittances not only represent a basic livelihood for millions of households, but also constitute an essential engine for sustainable development in many nations.
What are family remittances?
Remittances are the funds that migrants regularly send to their countries of origin, generally to family members, to cover basic needs such as food, housing, education, and health. This private economic flow has a direct impact on the quality of life of millions of people, especially in rural areas and small towns in developing countries.
According to recent estimates, approximately 75% of remittances are used to cover immediate needs, while the remaining 25%, which exceeds 100 billion dollars annually, is used for other purposes such as savings, investment, and long-term projects. Improving savings and investment opportunities can allow migrant families to build a more stable and prosperous future.
Remittances have a direct impact on the lives of nearly one billion people—one in seven globally—and their total volume even exceeds foreign direct investment and accounts for nearly three-quarters of official development assistance.
A global recognition
This day was proclaimed in 2015 by the 176 Member States of the International Fund for Agricultural Development (IFAD) and supported by the UN General Assembly, reflecting a global commitment to maximize the potential of remittances in the fight against poverty and the promotion of development.
An opportunity for the future
It is projected that during the 2030 Agenda, remittances to developing countries will reach 4.5 trillion dollars, a figure that could transform the lives of millions of people, especially in rural communities where these resources are crucial.
Furthermore, despite the challenges imposed by the pandemic, in 2021 migrants sent 605 billion dollars to their families in low- and middle-income countries. Currently, around 200 million migrant workers provide essential services in more than 40 high-income countries and financially support 800 million family members in more than 125 countries.
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Beyond the global figures, the most significant aspect is the monthly shipments of 200 or 300 dollars, which in many households represent more than 60% of their income. These remittances are a tangible expression of affection and commitment that helps tens of millions of families achieve their personal and sustainable development goals.
Although remittances are private funds, there is growing support from the private and regulatory sectors to maximize their impact. Governments and international financial institutions have the opportunity to strengthen financial inclusion, especially in the poorest rural areas, through policies that facilitate the sending of money and promote savings and productive investment.
